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Government Purchases and the Multiplier Effect
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Problem 10
Government Purchases and the Multiplier Effect
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20. Fiscal Policy / Government Purchases and the Multiplier Effect / Problem 9
Problem 9
What happens to household consumption when government spending increases?
A
Household consumption increases due to higher income.
B
Household consumption remains unchanged.
C
Household consumption decreases due to lower income.
D
Household consumption decreases due to higher taxes.
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